When two or more people decide to enter into the property market together, they must make the decision of whether to hold the property as Joint Tenants or Tenants in Common.
Joint Tenants are where the multiple property owners decide to own identical shares of the property. Therefore, the ownership of the property is conceived as joint ownership of the whole property by the Joint Tenants.
The purpose of joint tenancy is that upon the death of one of the Joint Tenants, their share will automatically be transferred to the other joint tenant through the legal process of survivorship.
It is important to note that joint tenancy is usually applied in situations involving couples wanting to live together as issues arise when one Joint Tenant wishes to sell, and the other does not. In such a case, the Joint Tenants will need to make an application to the court under the Property Law Act 1974 (Qld) for a partition.
Tenants in Common:
On the other hand, Tenants in Common own the property in divided individual shares i.e. own separate shares. In this circumstance, the shares do not need to equal the same amount and each owner owns separate proportions of the property. For example, one owner may hold 80% of the property and the other 20%. This is the main difference between Joint Tenants who own 50/50 or equally divided shares.
Under Tenants in Common, there is no right of survivorship and therefore, if one owner passes, their property interest gets passed on to their estate in accordance with their will. This does not mean that the owner who passes cannot leave their share to the other owners, it just requires the transfer to be stated in their will.
Hopefully, this quick read has helped you learn a little bit more about the difference between Joint Tenants and Tenants in Common.
📲 Feel free to contact Hatzis Lawyers for further information or to begin your conveyancing process.
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